The dispute settlement mechanism under the World Trade Organization is the nucleus of the multilateral trading system and is based on a systematic, elaborate and comprehensive body of rules as enumerated in the Dispute Settlement Understanding (DSU) and has been characterized as the most active international adjudicative mechanism in the world at present. Despite such praise and positive attributes, the mechanism has sometimes been subjected to criticisms due to some inherent limitations in the whole process of settlement of trade disputes between the member states. This article examines and explores these limitations of the mechanism that have found place in recent WTO literatures in addition to the success and achievement of the same. Efforts have also been made through this article to find solutions to the difficulties with the existing system and while doing so the author attempted to suggest some improvements and recommended reforms which have also been reflected and supported in the legal literature on international trade issue. It is expected that these reforms will only add to the success story of the WTO dispute settlement mechanism and will contribute towards enhancement of the efficiency of the mechanism in resolving trade disputes between member states of the WTO.